Tribunals and Commissions judgments

The ITAT Delhi has ruled that cash deposits made during the demonetization period, when fully documented through audited financial books, VAT returns, and stock records, cannot be taxed as unexplained income under Section 68. This sets a critical precedent for small and medium retailers who rely on cash transactions, affirming that proper bookkeeping overrides mere suspicion of undisclosed income.

When tax authorities drop a demand entirely, deposits made under protest must be refunded without being barred by the one-year limitation under Section 11B. This ruling protects businesses from being penalized for complying with investigative demands while preserving their legal rights, setting a critical precedent for service tax and customs taxpayers across India.

CESTAT Chennai rules that LCD panels, even when custom-designed for vehicle instrument clusters, cannot be classified as motor vehicle parts under CTH 8708/8714 because they are more specifically covered under CTH 9013 as liquid crystal devices. This clarifies that mere integration into a vehicle does not override the principle of specific tariff headings over use-based classification, impacting importers of electronics for automotive use nationwide.

CESTAT Kolkata rules that CRCL reports stating goods 'appear to be processed' are insufficient to prove intentional misdeclaration, and thus cannot justify invoking the extended limitation period under Section 28(4) of the Customs Act. This protects importers from punitive duties based on ambiguous technical assessments, reinforcing that classification disputes are not fraud unless suppression is proven.

The ITAT Bangalore ruled that the absence of building details in a sale deed cannot override credible documentary evidence - such as construction bills, lease agreements, and TDS records - proving actual construction for capital gains computation. This clarifies that tax authorities must evaluate substance over form, empowering property owners to claim indexed costs even when paperwork is incomplete.

CAT Cuttack holds that cancelling a departmental selection process after completion of written exams-without valid justification-breaches principles of natural justice and Railway Board directives. The ruling reinforces that administrative discretion cannot override procedural fairness in promotions, impacting railway employees' career progression rights.

NCLAT clarifies that the limitation period for IBC appeals begins from the date of order upload on the tribunal's portal, not the date of pronouncement. The ruling condones delay where an operational creditor, unaware of the proceedings, files an appeal within 15 days of learning of the order, reinforcing procedural fairness in insolvency disputes.

CAT Jammu rules that denying promotion benefits to a senior employee while granting them to a junior in identical circumstances violates constitutional guarantees of equality. The tribunal directs the respondents to extend the same benefits to the applicant as granted to respondent No. 5, ensuring parity in compassionate appointments under service law.

CAT Cuttack ruled that General Assistants in Doordarshan and All India Radio hold distinct promotional avenues separate from the LDC/UDC cadre, quashing erroneous promotion orders. The judgment reinforces that cadre-specific promotional rules must be adhered to, ensuring fair career progression for affected employees.

CAT Jammu rules that executive orders cannot override statutory recruitment rules to grant retrospective promotions, safeguarding the seniority rights of direct recruits. The judgment reinforces that promotions must align with prescribed rules, preventing arbitrary administrative actions that disrupt service hierarchies.

CAT Jammu rules that permanent absorption in a post mandating Public Service Commission selection cannot bypass statutory recruitment rules, even for employees with long temporary service. The judgment reinforces that lateral entry or absorption must comply with prescribed selection processes, impacting government hiring policies and service law compliance.

NCLAT ruled that co-developers of the completed 'Doon Square' project can execute registration deeds for homebuyers under the Master Agreement dated 08.10.2024, despite the corporate debtor's insolvency. The Tribunal directed statutory authorities to accept joint applications, reinforcing homebuyers' rights in project-wise resolution under the Insolvency and Bankruptcy Code.

CAT Kolkata ruled that disciplinary proceedings under CCS (CCA) Rules cannot extend to alleged irregularities in external examinations, as these fall outside departmental jurisdiction. The tribunal quashed a major penalty charge sheet against a government employee for purportedly irregular candidature in the Bihar School Examination, reinforcing the boundaries of natural justice in service law.

CAT Jammu dismisses a plea seeking inclusion of 39-week pre-appointment training as qualifying service for pension, citing a 32-year delay and non-compliance with Rule 22 of CCS (Pension) Rules, 1972. The ruling reinforces that undue delay in raising service-related claims can bar pensionary benefits, impacting retired government employees.

CAT Principal Bench ruled that arbitrary withholding of retiral dues, including leave encashment, without statutory backing constitutes a violation of Article 300-A. The Tribunal directed the respondent corporation to release the withheld amount along with GPF interest, reinforcing constitutional protections for retired employees' property rights.

CAT Delhi ruled that government employees with children in Class 10 or 12 are entitled to protected status under transfer policies, directing reconsideration of transfer orders that disregard this safeguard. The judgment reinforces natural justice principles for government servants, ensuring transfers do not disrupt their children's critical academic years.

CAT Allahabad rules that compassionate appointment under DoPT OM 16.01.2013 cannot be denied based on unproven criminal allegations or family objections. The tribunal emphasizes financial dependency as the primary criterion, overriding procedural disputes where no conviction exists.

CAT Kolkata quashes disciplinary proceedings against a retired Group 'A' officer, ruling that once the disciplinary authority accepts an inquiry report under CCS (CCA) Rules 1965, it cannot later issue a disagreement note. The decision reinforces natural justice principles, protecting government employees from arbitrary post-facto revisions in disciplinary actions.

CESTAT Chandigarh holds that refund claims for mistaken service tax payments by educational institutions are subject to the one-year limitation period under Section 11B of the Central Excise Act. The ruling underscores strict compliance with procedural timelines, even for exempted entities, impacting tax refund claims across sectors.

CESTAT Allahabad holds that importers retain the right to challenge customs reassessment under Section 17(5) of the Customs Act, 1962, even after submitting written consent. The ruling clarifies that coercive consent does not estop importers from contesting valuation, safeguarding their right to a speaking order and fair assessment.

CAT Ernakulam rules that promotee IPS officers cannot draw lesser pay than their juniors, ensuring strict compliance with seniority-based pay fixation under the IPS (Pay) Rules. The tribunal caps arrears to three years, balancing equity and administrative feasibility for retired officers.

CESTAT Kolkata holds that Export Obligation Discharge Certificates (EODCs) issued by DGFT are binding and conclusive evidence of export obligation fulfilment under FTP schemes. The ruling sets aside a ₹14.97 crore customs demand, reinforcing legal certainty for exporters and importers relying on DGFT authorisations.

CESTAT Kolkata ruled that when statutory documents are unavailable due to passage of time, actual production records submitted by the assessee hold legal precedence. The Tribunal set aside an excise duty demand of ₹73.1 lakh, reinforcing that tax authorities cannot rely on procedural lapses caused by delay to deny consequential relief to manufacturers.

CAT Jammu reinforces that mere dissatisfaction with recruitment outcomes is insufficient to challenge selections. Unsuccessful candidates must demonstrate concrete procedural illegality or arbitrariness to assail the process, safeguarding merit-based appointments from frivolous litigation.